the economics of money, banking, and financial markets

882 #

© 2014 Pearson Canada Inc.#

9. 
   

   Everything else held constant, if aggregate output is to the left of the LM curve, then there is
   an excess ____ of money which will cause the interest rate to ____.
   A) supply; fall
   B) supply; rise
   C) demand; fall
   D) demand; rise
   Answer: A
   Diff: 2 Type: MC Page Ref: 3
   Skill: Recall
   Objective List: WEB CHAPTER: The ISLM Model

   
   


10. 
    

    Everything else held constant, if aggregate output is to the ____ of the LM curve, then
    there is an excess supply of money which will cause the interest rate to ____.
    A) right; fall
    B) right; rise
    C) left; fall
    D) left; rise
    Answer: C
    Diff: 2 Type: MC Page Ref: 3
    Skill: Recall
    Objective List: WEB CHAPTER: The ISLM Model

    
    


11. 
    

    Everything else held constant, if aggregate output is to the ____ of the LM curve, then
    there is an excess demand of money which will cause the interest rate to ____.
    A) right; fall
    B) right; rise
    C) left; fall
    D) left; rise
    Answer: B
    Diff: 2 Type: MC Page Ref: 3
    Skill: Recall
    Objective List: WEB CHAPTER: The ISLM Model

    
    


12. 
    

    Everything else held constant, if aggregate output is to the ____ of the LM curve, then
    there is an excess ____ of money which will cause the interest rate to fall.
    A) right; supply
    B) right; demand
    C) left; supply
    D) left; demand
    Answer: C
    Diff: 2 Type: MC Page Ref: 3
    Skill: Recall
    Objective List: WEB CHAPTER: The ISLM Model